at don't share the norms of the area. In 10 years time the picture might be more different too. For example, more people now are commuting longer distances to work and don't necessarily live in a neighbourhood near to their place of work. Also, newer housing estates are made up of various types of housing, thus attracting different kinds of people, so while geodemographics is a good segmentation technique for now, in a few years it will probably need to be reviewed.
Geodemographics is sometimes known as "locality marketing". The locality aspect is its most fundamental feature and it's greatest strength. This quality means that once you have identified your target market in geodemographic terms, you then know where that market is located, and knowing that, you can establish the most cost effective means of reaching that market with your message. Also, from this data firms can identify how certain products will sell as a person's lifestyle directly influences what they will buy. It was revolutionary when it burst on to the scene in the early 1980's and is an increasingly used segmentation method. It changed many marketers thinking because using a neighbourhood classification, instead of just certain large areas in a country, meant that marketers could distinguish 36 different types of census neighbourhood, and establish the relative importance of each of those types to a particular market. This meant that they gained a much clearer picture !
of who was buying and using a particular product or brand and what neighbourhood they lived in.
The most common geodemographic technique is ACORN (A Classification Of Residential Neighbourhoods) and is based on population census data and clusters neighbourhoods that share similar characteristics. It was first used by local authorities to
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